Charge-for-service near field communication transactions

ABSTRACT

A method for purchasing a value item using near field communication (NFC) includes placing a NFC enabled data communication device of a buyer of the item in close proximity to a NFC enabled data communication device of a seller of the item, the devices being interoperable to establish a NFC communication link between the devices when placed in close proximity to each other, transferring a request for payment for the item from the seller&#39;s device to the buyer&#39;s device via the NFC link, and transmitting the payment request, together a buyer&#39;s authorization therefor, to a third party service provider via a network. In response to receipt of the transmission, the service provider transfers money in an amount equal to the purchase price of the item from a funding account of the buyer to a receiving account of the seller, and optionally, can send the parties a message confirming the transfer.

RELATED APPLICATIONS

This application is a continuation of U.S. patent application Ser. No.12/242,667, filed Sep. 30, 2008, which claims benefit of U.S. Prov. App.Nos. 61/024,758, filed Jan. 30, 2008, and 61/034,890, filed Mar. 7,2008, the entire disclosure of each of which is incorporated herein byreference.

BACKGROUND

1. Field of the Invention

The present disclosure relates generally to financial transactions, andmore particularly, to making peer-to-peer payments for services betweenmobile devices using near field communication (NFC) in a networkenvironment.

2. Related Art

Arguably, mobile phones are currently the most widespread mobilecomputing device in the world. They have become ubiquitous companions inour life, enabling communication nearly anytime and anywhere tofacilitate information access to mobile services and the Internet. Inaddition, mobile phones have become multimedia computing platforms withintegral digital cameras for taking pictures and video, playing music,recording conversations, and for organizing our lives.

Using physical objects as entry points to data and services can easemobile communication and information access. Augmentation of theenvironment enables physical mobile interactions, which involve a user,a mobile device, and a physical object or another mobile device. Theobject is augmented with some kind of technology and subsequently storesinformation, The information is typically associated with a mobileservice that might be triggered through an interaction with the physicalobject. Physical mobile interactions make it possible to bridge the gapbetween the physical and virtual world. In order to supportcommunication between the mobile device and the augmented object,communication technologies are required.

Different short-range communication technologies have been integratedinto mobile devices in recent years. The process began with infraredtransceivers for synchronizing applications with a desktop computer.Bluetooth technology evolved and overcame some of the problemsexperienced with infrared. However, when attempting to connect twodevices with Bluetooth, the setup is often lengthy and is very often notuser-friendly.

Radio Frequency Identification (RFID) is another technology that hasbeen easily integrated into mobile devices, such as cellular telephones,personal digital assistants (PDAs), or computers. RFID works with bothactive communication devices (transceivers or read-write devices) andpassive non-powered tags (transponders). The tags are relatively small,inexpensive, and can store information, making them suitable foraugmenting physical objects unobtrusively. The transponder is attachedto objects that are to be identified and contains information, such asproduct price or vehicle identification, for example. The transceiverdevice emits an electromagnetic signal that activates the tag andenables the transceiver to read the tag's information and/or to alterit, assuming the tag is re-writeable. Usually, the transceiver is incommunication with a computer or similar device to which the informationis passed.

Near Field Communication, herein referred to as “NFC,” is the mostrecently explored technology for object augmentation to bring mobiledevices and physical objects together to enable a user to interact withthe augmented objects for information and/or data communication.

In this regard, NFC is a short range, high frequency, wirelesscommunication technology that enables the exchange of data betweendevices over a relatively short distance, viz., 0-20 cm. NFC is based onRFID technology and uses many of the same working principles. Thetechnology is standardized in ISO/IEC 18092 (International Organizationfor Standardization/International Electrotechnical Commission), ECMA-340(European association for standardizing information and communicationsystems), and ETSI 102.190 (European Telecommunications StandardsInstitute). All of these standards define the NFC Interface andProtocol-1 (NFCIP-1), see FIG. 1, which specify the modulation schemes,coding, transfer speeds and frame format of the RF interface of NFCdevices, as well as initialization schemes and conditions required fordata collision-control during initialization for both passive and activeNFC modes.

NFC is also standardized in ISO/IEC 21481 and ECMA 352, whichcorresponds to NFC Interface and Protocal-2 (NFCIP-2). The NFCIP-2standard specifies the mechanism to detect and select one communicationmode out of three possible communication modes typical of NFC devices(Peer-to-Peer, Read/Write Card, and Card Emulation), as further shown inFIG. 1.

NFC is compatible with ISO/IEC 14443 type A and type B (proximity cardsoperating at a maximum distance of 20 cm), ISO/IEC 15693 (vicinity cardsoperating at a distance from 10 cm to 2 m) and to the FeliCa contactlesssmart card system. Accordingly, an NFC device can communicate with bothexisting ISO 14443 smartcards and readers, as well as with other NFCdevices, and is compatible with existing contactless infrastructurealready in use for, among other things, public transportation, payment,and promotion/advertising.

As discussed above and illustrated in FIG. 1, a key feature of NFCdevices is that the NFC chip that is integrated into the NFC device canread out an RFID tag's information, emulate a smart card so that areader can access its data, or communicate directly with another NFCdevice in peer-to-peer fashion when the two NFC enabled devices arebrought into direct contact or in very close proximity to each other. Inother words, NFC technology enables communication between devices thatboth have active power and computing capabilities, as well ascommunication between powered devices and passive tags.

For operating in Reader Mode, it is sufficient to hold the NFC devicenear a compatible tag that stores some information (typically 1 Kb-4kb). This information could be, for example, a bookmark of a companywebsite in the company advertising poster, a timetable of a bus near abus stop, some tourist information beside works of art near a museum, orthe like. With peer-to-peer communication mode, it is possible, forexample, to synchronize calendars between two NFC PDAs, or to set upnetworks (Bluetooth, Wi-Fi, or the like) simply by holding the two NFCdevices in close proximity to each other. In card emulation mode, theNFC device can host virtual payment cards and enable the user to makepayments. For example, it is possible to buy a travel ticket whileproviding management of associated customer loyalty and bonus programs.In card emulation mode, it is also possible to control access, i.e., theNFC device acts as a key.

Prior to utilizing many known NFC devices for the first time, some sortof preoperationally process is typically required. In this regard, thepresent disclosure describes an activation and authorization processthat may provide security features, as well as check NFC devicecompatibility and pre-configure the device accordingly.

One example of an NFC technology application is financial transactions.A consumer taps the NFC device on a reader to effect a monetarytransfer. Typically, a retailer enters the total amount due, and theconsumer taps the NFC device on the reader, which causes payment detailsto be sent to the consumer's financial institution. Very shortly after,the consumer and retailer receive payment confirmation. Such a methodprovides advantages such as eliminating the need to carry cash andenabling a faster financial transaction. PayPass is an example of thistype of method. However, this method is limited in that the transfer iswith a retailer at a POS terminal or reader. Further, the consumer NFCdevice simply authorizes a money transfer based on the POS terminal.

SUMMARY

For purposes of summarizing the disclosure, exemplary embodiments ofpeer-to-peer payments between mobile devices using near fieldcommunication in a network environment are described herein.

In one embodiment, a method for purchasing a value item, such as a musicdownload, using near field communication (NFC) includes placing a NFCenabled data communication device of a purchaser of the item in closeproximity to a NFC enabled data communication device of a seller of theitem, the devices being interoperable to establish a NFC communicationlink between the devices when placed in close proximity to each other,transferring the value item, together with a request for payment for theitem, from the seller's device to the buyer's device via the NFC link,and transmitting the payment request, together a buyer's authorizationfor the payment, to a third party service provider via a network andthereby causing the service provider to transfer money in an amountequal to the purchase price of the item from a funding account of thebuyer to a receiving account of the seller.

A better understanding of the above and many other features andadvantages of the novel payment systems and methods of the presentinvention may be obtained from a consideration of the detaileddescription of some example embodiments thereof below, particularly ifsuch consideration is made in conjunction with the several views of theappended drawings, wherein like elements are referred to by likereference numerals throughout.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 shows that an NFC enabled device can read out an RFID tag'sinformation, emulate a smart card so that a reader can access its data,or communicate directly with another NFC device in peer-to-peer fashionwhen the two NFC devices are brought in direct contact or in very closeproximity to each other.

FIGS. 2 and 3 show the establishment of a Bluetooth or a similar shortrange wireless communication between two computers using NFC.

FIG. 4 shows the use of an NFC enabled computer (PC) and NFC enabledmobile phone to download a game application from a website directly intothe mobile phone.

FIG. 5 shows an example of NFC devices communicating consumer accountinformation via radio frequency (RF) to a retailer's payment terminal.

FIG. 6 shows a system and method for enabling a peer-to-peer financialtransaction between mobile devices using near field communication in anetwork environment in accordance with one embodiment.

FIG. 7 shows application(s) activation in accordance with oneembodiment.

FIGS. 8A and 8B respectively illustrate a typical “known” request formoney and a contrasting request for money in a peer-to-peer financialtransaction between mobile devices using near field communication in anetwork environment in accordance with one embodiment of the presentinvention.

FIG. 9 shows examples of various interface screens that be applicable tothe a sender's mobile device and/or a recipient's mobile device forconducting a peer-to-peer financial transaction between mobile devicesusing near field communication in a network environment in accordancewith one embodiment.

DETAILED DESCRIPTION

Exemplary embodiments will now be described with references to theaccompanying figures, wherein like reference numbers are used to referto like elements throughout. The terminology used in the descriptionpresented herein is not intended to be interpreted in any limiting orrestrictive manner simply because it is being utilized in conjunctionwith a detailed description of certain embodiments. Furthermore, variousembodiments (whether or not specifically described herein) may includenovel features, no single one of which is solely responsible for theirnovelty or desirability.

As indicated above, NFC is a short-range wireless connectivitytechnology that evolved from a combination of existing contactlessidentification and interconnection technologies. Operating at 13.56 MHzvia magnetic field induction (i.e., two loop antennas are located withineach other's near field) and transferring data at up to 424Kbits/second, NFC provides simple communication between electronicdevices over relatively short distances, viz., 0-20 cm. This means thatno restrictions are applied and no licenses are required for use of theNFC devices in the RF band. NFC is both a “read” and “write” technology.Furthermore, combining the read and write modes in more than two mobiledevices enables a third peer-to-peer mode by alternating between readand write modes. As also discussed above, the underlying layers of NFCtechnology follow universally implemented ISO, ECMA, and ETSI standards.Because the transmission range of NFC is very short, NFC-enabledtransactions are relatively secure. However, to provide more robustsecurity, applications may use higher layer cryptographic protocols,such as TLS, SS, or the like.

In this regard, the NFC interface and protocols primarily targetconsumer electronics users that will be able to use the secure means ofcommunication between various devices without exerting much effort inconfiguring their “network”. Communication between two NFC-compatibledevices occurs when they are brought in close proximity with a wave ortouch of the two device(s). This action causes the respective NFCwireless interfaces of the two devices to engage and configure thedevices to link up in a peer-to-peer network, enabling the automated andtransparent establishment of a network connection between the devices.

The NFC communication protocol distinguishes between an Initiator deviceand a Target device of the NFC network communication. Any device may beeither an Initiator or a Target. The Initiator, as indicated by thename, is the device that initiates and controls the exchange of data.The Target is the device that answers a request for data from theInitiator. A device may also be both initiator and target, as describedin the peer-to-peer mode above.

The NFC protocol further distinguishes between two modes of operation,viz., an Active mode and a Passive mode. All devices support bothcommunication modes. In the active mode of communication, both devices,i.e., both the Initiator and the Target, generate their own RF field tocarry the data. In the passive mode of communication, only one device(the Initiator) generates the RF field while the other device (theTarget) uses load modulation to transfer the data. This can be animportant consideration for battery-powered devices, since theconservation of battery power is generally a high priority. As such, theprotocol enables a device, such as a mobile phone, to operate in apower-saving mode (passive mode of NFC communication). In other words,the passive mode does not require both devices to generate the RF fieldand enables a complete communication to be powered from one side only.(The device still needs to be powered internally, but does not have to“waste” the battery on powering the RF communication interface.)

The difficulty in using longer-range protocols, such as Bluetooth andWireless Ethernet (Wi-Fi), is in selecting the correct device from amultitude of devices in the operating range and providing the rightparameters to establish the connection. However, NFC overcomes thisdifficulty, as once the configuration data has been exchanged using NFC,the devices can then easily setup and continue to communicate over agreater range and using faster protocols, such as Bluetooth or WirelessEthernet (Wi-Fi).

For example, as indicated by the dashed double-headed arrow 2 in FIG. 2,ordinarily, to establish Bluetooth communication between two computers,the two devices need to be setup manually with a password to protectcommunication. However, as indicated by the broad arrow 1 in FIG. 2, NFCmay be used as a first step in establishing, e.g., a Bluetoothcommunication link by simply touching, or “tapping” one of the twodevices against the other, or by bringing the two devices into closeproximity to each other. By touching the devices at a “hotspot,” theycan automatically open a data connection link to exchange the parametersof the Bluetooth communication and thereby seamlessly establish a secretkey without any further action being required on the part of the user.As illustrated in FIG. 3, once the Bluetooth communication link isestablished, the devices can then be moved away from each other in asecond step as communication between the devices continues using thesession of Bluetooth that was previously established.

Substantially the same NFC procedure may be used to establish a wireless(e.g., Bluetooth, Wi-Fi, or the like) connection with a variety ofdevices, from mobile phones that enable payment or transfer ofinformation to digital cameras that send their photos to a televisionset with just a touch. For example, as illustrated in FIG. 4, by usingan NFC enabled computer (PC) and an NFC enabled mobile phone, a gameapplication may be downloaded from a website directly into the mobilephone from the PC.

NFC capabilities further include information access via a “smart poster”application. In this example, the user taps an NFC enabled mobile phoneto a tag embedded in a poster or similar object, which then triggers thetransmission of a uniform resource locator (URL) to the phone. The URLcould be used, for example, to direct a user to a website at which theuser can gather information or download a special coupon or token.

As illustrated in FIG. 5, other examples of NFC applications includemobile cell phones, cards, or key fobs that have a built-in integratedcircuit (IC) microchip and antenna. The chip is able to emulatecontactless smart cards. Consumers can use the NFC device to communicateconsumer account information via radio frequency to the retailer'spayment terminal, such as the VIVO pay line of contactless paymentsystems manufactured by VIVOtech. The payment terminal then connects tothe appropriate financial networks or other back-end processing systemto authorize the transaction. Once authorized, the consumer completesthe transaction and receives payment confirmation.

Mobile cell phones or “wallet phones” may include a prepaid wallet thatcan be used for making mobile payments. Users interact with readers atpoint of sale (POS) terminals or cash machines to recharge the walletand access control systems located there, for example, ticketing andreservation systems at train stations, airports, hotels, and the like,using the wallet phone to make purchases.

FIG. 6 illustrates an example embodiment of a system and method forenabling a peer-to-peer financial transaction between mobile devicesusing near field communication in a network environment in accordancewith this invention. The system and method for enabling a peer-to-peerfinancial transaction between mobile devices 100 may include a first NFCenabled mobile device 105 and a second NFC enabled mobile device 110, anetwork 115 to enable connectivity between entities/elements and theflow of information, and a third party payment provider system 120 (PPS)for, among other things, payment processing (verification, authorizationand confirmation) of the financial transaction between the mobiledevices 105 and 110, as well as the debiting and crediting ofappropriate accounts respectively associated with each of the users 140and 145 thereof.

As used herein, the term “mobile device” is a broad term and mayinclude, but is not limited to, cell phones, personal digital assistants(PDAs), smart phones, key fobs, smartcards, computers or PCs, or similartype of augmented objects or devices.

Each of the mobile devices 105 and 110 are NFC enabled and may include,among other things, a user identifier 125, an NFC service application126, a network communication application 127, and other applications128, including a payment provider application, a browser application, atoolbar application, and the like, as may be necessary to enable NFCcommunication between the mobile devices 105, 100 and the paymentprovider system 120 via the network 115.

Broadly, the NFC service application 126 provides those features thatgenerally enable NFC communication between NFC enabled devices, but mayalso enable the user to activate various multimedia features, as well asto effect financial transactions via icon linked applications, such as“send money,” “request money,” “send contact information,” “acquirecontact information,” and the like.

Likewise, the payment provider application provides those features thatgenerally enable the mobile device 105 and 110 to communicate with thepayment provider system 120, but may also enable the user to activatevarious multimedia features, as well as to effect financial transactionsvia icon linked applications, such as “send money,” “request money,”“send contact information,” “acquire contact information,” and the like.

Accordingly, persons of ordinary skill in the art will understand thatthe use of either a NFC service application and a separate paymentprovider application, or the use of a single bundled application that isthe functional equivalent of the NFC service application and the paymentprovider application in any mobile device may depend on a number offactors, including manufacturer preferences, cost, and intended use, toname a few. Accordingly, the term “application,” “applications,” or“application(s)” as used herein indicates that either a separate NFCservice application and a payment provider application, or a bundledapplication having capabilities of both the NFC service application andthe payment provider application is present in the mobile device.

In one example embodiment, the network 115 may be implemented as asingle network or a combination of multiple networks. For example, invarious embodiments, the network may include the Internet and/one ormore intranets, landline networks, wireless networks, and/or otherappropriate types of communication networks. In another example, thenetwork may comprise a wireless telecommunications network (e.g.,cellular phone network) adapted to communicate with other communicationnetworks, such as the Internet.

The payment provider system 120 may include, among other things, aserver identifier 130, a payment processing application 131, and anaccount database 132 having account information 133 and other databases134, as may be required to enable payment processing between the mobiledevices 105 and 110.

In one embodiment, a financial transaction between the mobile devices105 and 110 may include the transfer or sending of money from the firstmobile device 105 (sender) to the second mobile device 110 (recipient).In this regard, preconditions for the successful completion of thetransfer of money between mobile devices 105 and 110 include theassumptions that the first mobile device 105 and the second mobiledevice 110 are NFC enabled; that a payment provider service application126, NFC service application, or bundled application is present on thesender's 140 mobile device 105; and, that at least the sender 140 has apreviously established payment provider account 132.

In this regard, the application(s) setup may be facilitated over-the-air(OTA), wherein, depending on implementation, an OTA application/softwaredownload can be initiated upon an action, such as a call to the paymentprovider system 120 or other dialable service, or can be performedautomatically when visiting a service site.

Alternatively, the application(s) setup may be facilitated by usinganother NFC chip, wherein, for example, a pre-loaded NFC card issued bythe payment provider system 120 or other entity may be pre-loaded with abasic application, account information, URL, and the like, such that,when touched to an NFC enabled mobile device, the information istransferred to the mobile device to permit access to an OTA site wherethe application/software download can be effected.

In one embodiment, an initial payment provider application activationprocess may be required to be completed prior to utilizing theapplication(s) 126-129 for the first time. In this regard, asillustrated in FIG. 7, application(s) activation may begin with the userentering login information, such as a phone number, pin number, emailaddress and/or password, and the like, in the mobile device 105, 110.The application forwards the information and a public key (uniqueidentifier) 125 based on the NFC mobile device's chip to the paymentprovider system 120. In one embodiment, network connectivity for thecommunication of voice and/data between the mobile device 105, 110 andthe payment provider, e.g., PayPal. A Short Message Service (SMS) textmessage to the mobile device is then communicated from the paymentprovider system 120 may be facilitated by an HTTPS (Hyper Text TransferProtocol Secure) connection over a general packet radio service (GPRS).GPRS is a packet based wireless communication service that offerscontinuous connection to the Internet or other network 115 for mobilephone and computer users. GPRS is based on GSM (Global System for MobileCommunication) and complements existing services such as circuitswitched cellular phone connections and the Short Message Service (SMS),i.e., text message. Persons of skill in the art will understand similarprotocols and wireless services may be utilized within the scope of thedisclosure to enable wireless connectivity and communication between themobile devices and the payment service provider.

In response to receiving the user's information and unique identifier,the service provider system 120 sends packet information to the mobiledevice 105, 110. The packet information from the payment provider system120 to the mobile device may include data relating to country, currency,language, activation code and/or security keys. A corresponding codegenerated by the application is then communicated back to the paymentprovider system 120 from the mobile device 105, 110.

In this regard, such a back-and-forth communication or “handshake”between the mobile device 105, 110 and the payment provider system 120allows for user and/or system verification, authorization, andcompatibility check to complete the application(s) activation process.Typically, the users 140, 145 are then notified that the application isactivated. Packet information previously sent from the payment providersystem 120 to the mobile device 105, 110 is stored on the chipset forfuture use when activating the application(s) 126-129. The paymentprovider system 120 may further communicate a short welcome text messageto the mobile device 105, 110.

After the initial setup and activation of the application(s) iscomplete, subsequent activation of one or more of the application(s) mayoccur upon activation of the mobile device. In one embodiment, themobile device 105 may be a cell phone in which activation may occur uponopening the mobile device 105. Typically, as indicated above, access oractivation of the mobile device 105 will likewise activate one or moreof the applications. In another case, the sender 140 may be required totouch a feature (e.g., an icon, pushbutton, or the like) on the mobiledevice 105 to access and activate one or more of the application(s). Inyet another case, activation of one or more of the applications mayoccur upon “tapping” or bringing the mobile device 105 in closeproximity with another NFC enabled device.

Upon activation of the mobile device 105, the sender 140 may bepresented with menu options for enabling various functions, includingthose associated with, for example, multimedia features (e.g., music,video, games, and the like), user contact information, and thoserelating to financial transactions, such as “request money,” “sendmoney,” and the like.

The sender 140 may then choose the desired function from the menuoptions, for example, “send money” in the case of a proposed moneytransfer between the mobile devices 105 and 110. In one embodiment, thesender 140 may be asked to enter, in no particular order, fundingparticulars, including a funding source (e.g., MC, VISA, AMEX, Citibank,PPS account, or other funding source account), the amount of money to besent, and login information (PIN, pass code, password, or the like).

As persons of skill in the art will appreciate, in the absence of anaffirmative choice of one or more presented funding particulars, presetdefault settings may be enabled. In addition, in some embodiments, thesender 140 may be presented with the opportunity to review and edit thepayment choices prior to communicating the payment request to thepayment provider system 120.

Upon activation of the mobile device 110, the recipient 145 may, likethe sender 140, be presented with various menu options for enablingvarious functions, including those associated with multimedia features(e.g., music, video, games, and the like), user contact information, andthose relating to financial transactions, such as “request money,” “sendmoney,” and the like. The recipient 140 of the intended money transfermay then choose the desired function from, for example, “receive money”or “ready, wait”(a default setting having implications of what is beingshared) in the case of the above described proposed money transferbetween the mobile devices 105 and 110. In one embodiment, by choosingthe “receive money” function, the recipient implicitly/explicitly agreesto provide certain designated information, such as email address, phonenumber, receiving account information, and the like, to facilitatefunding by the payment provider system 120 to the designated recipientaccount, digital wallet (phone), or email address where funds may bedeposited or acquired.

The sender 140 may then simply touch or “tap” the NFC enabled mobiledevice 110 of the recipient 145 with the sender's mobile device 105 toeffect the transfer of the designated recipient information from therecipient' mobile device 110 to the sender's mobile device 105 via NFC.

As those of ordinary skill in the art will understand, although themethod(s)/step(s) are illustrated and described herein as occurring in acertain order, the specific order, or any combination or interpretationof the order, is not required. Obvious modifications will be apparent tothose of ordinary skill in the art, all of which will not depart fromthe essence of disclosed subject matter, and all such changes andmodifications are intended to be encompassed within the scope of thedisclosure.

For example, recipient information may be acquired prior to selectingthe funding source and/or the amount of money to be sent by the sender140. In this regard, the acquisition of recipient information mayautomatically activate the “send money” function on the sender's mobiledevice 105, thereby presenting the menu options for enabling variousfunctions, including those relating to financial transactions, asdescribed above.

The sender's payment request is then automatically communicated(submitted) to the payment provider system 120 for processing,including, among others, verification, authorization, distribution, andconfirmation thereof. Alternatively, the sender 140 may be provided withan opportunity to review the payment request information prior to itssubmission to the payment provider system 120.

Upon the successful completion of payment processing, the paymentprovider system may communicate a corresponding SMS notification, i.e.,successful transfer of funds, successful deposit of funds, amount oftransfer or deposit, or some other related message informing the sender140 and/or the recipient 145 of the payment processing results, such asby way of an email, phone call, or a multimedia messaging service (MMS)message. Sender 140 and/or recipient 145 notifications may furtherinclude an audible and/or a visible and/or a tactile indication, such asa vibration in the respective devices.

In summary, in one embodiment, contact information of the transfer iscommunicated directly via NFC from the recipient's mobile device 110 tothe sender's mobile device 105. Payment review is done via NFC from thesender's mobile device 105 to the recipient's mobile device 110 showingthe conditions of the financial transaction. The payment request iscommunicated OTA to the payment provider system 120 in real-time, whilenotifications and confirmations are communicated to the sender's mobiledevice 105 and the recipient's mobile device 110 via SMS and/or MMSand/or other form of sensible indicators.

As described above, peer-to-peer payment between mobile devices 105 and110 may be facilitated using near field communication in a networkenvironment. In this regard, objects, such as mobile devices 105 and110, may be augmented with a chip to permit users to gather informationand/or conduct financial transactions. Such transactions include thepayment for goods, receiving money, transferring money, and transferringand receiving user information.

As further described above with reference to FIG. 6, a financialtransaction may include a “one-tap” process between NFC enabled mobiledevices 105 and 110 in which a single “tap” between the mobile devicescommunicates contact information (e.g., cell phone number or emailaddress), and then communicates the payment request to the paymentprovider system if the payment amount was previously entered.

Alternatively, a financial transaction may comprise a two step or“two-tap” process between NFC enabled mobile devices 105 and 110 inwhich a first “tap” between the devices communicates contact information(e.g., cell phone number or email address), as above, and a second “tap”between the devices communicates the payment request to the paymentprovider system 120. As discussed above, the sender 140 may be given theopportunity to review and edit certain of the details of thetransaction, e.g., payment amount, funding account, after effecting thefirst tap and before effecting the second.

The systems and methods for payment between mobile devices 105 and 110using near field communication in a network environment may be utilizedto facilitate an “open loop” financial transaction in which a one-timevirtual credit card or debit account is issued by the payment providersystem 120 and used by a merchant so that the user and merchant view theprocess as a standard financial transaction.

Alternatively, the systems and methods for payment between mobiledevices 105 and 110 using near field communication in a networkenvironment may be utilized to facilitate a “closed loop” financialtransaction in which the payment provider system 120 provides POSterminals for merchants. In this regard, a user can “tap” his or hermobile device 105 on the POS terminal to pay for merchandise and themerchant may be paid directly through the payment provider system 120.

FIGS. 8A and 8B respectively illustrate a typical “known” type ofrequest for money and a contrasting request for money in a peer-to-peeror “face-to-face” financial transaction between mobile devices usingnear field communication in a network environment in accordance with oneembodiment of the present invention.

In contrast to the known four-step process for requesting moneyillustrated in FIG. 8A, a money request utilizing NFC may, asillustrated in FIG. 8B, include a first step of (1) the recipientsending a request for money to the sender via NFC, a second step of (2)the sender authorizing payment with the payment provider system via anOTA transmission, and a third step of (3) the payment provider systemnotifying the recipient of the transfer of funds, as illustrated in FIG.8B.

In this regard, by communicating information via NFC, the sender onlyneeds to enter a PIN to approve payment with the payment providersystem.

Similar to the money request transaction illustrated in FIG. 8B, a“charge for a service” may be conducted in a peer-to-peer financialtransaction between mobile devices using near field communication in anetwork environment in accordance with one embodiment. In this regard,in the first step of FIG. 8B, downloadable data content, for example, amusic download or a computer game, may be communicated to the sender'smobile device along with a money request of a specified amount for thedownloaded item from the recipient's mobile device via an NFC link. Ifthe sender agrees to the purchase of or the sending of money for themusic download, the process would then continue with steps (2) and (3)substantially as described above.

In detail, in this embodiment, the recipient-seller may send a valueitem (e.g., a locked music file) along with a payment request to thesender-buyer via an NFC link between the respective NFC enabled devicesof the recipient and the sender initiated by, e.g., a single a “tap”between the devices. If the sender does not agree to purchase the item,the transaction is terminated, and the value item remains locked orunusable by the user. However, if the sender chooses to purchase theitem, then the sender sends the payment request, along with the sender'sauthorization to make the payment, to a third party service provider,e.g., PayPal, which can be effected by a second tap between therespective devices, or alternatively, by a direct OTA communication bythe sender with the third party provider.

The third party provider then makes the payment authorized by the senderand sends a message confirming the transaction to the sender and therecipient. The NFC devices may connect to the Internet to effect themoney portion of the transaction. As in the above embodiments,additional information can be transferred along with the paymentinformation, such as user IDs, telephone numbers, account numbers,avatars, icons, and the like. Once the transaction is in progress or hasbeen completed, the users are notified thereof, such as with an audioand/or visual indication and/or a tactile message, e.g., a vibration ofthe respective recipient and sender devices. The value item may then beunlocked, e.g., by receipt of the confirmation message itself, or by theseparate transmission of a digital “key” from the recipient to thesender, so that the value item can be then be used or accessed by thesender.

It should be understood that the value item need not necessarily bedownloaded simultaneously with the payment request from the recipient,or indeed, be a downloadable type of item at all. Thus, in anotherembodiment, an “offer of sale” of the item, i.e., a payment requestalone, may be transmitted to the sender via a first tap between therespective NFC devices of the sender and recipient, and upon acceptanceof the offer by the sender, transmission of the payment request andauthorization therefor to the third party provider, and receipt ofconfirmation of the success of the transaction by the recipient, atransmission of the subject “goods,” i.e., the music or game (in anunlocked state), from the recipient to the sender via an NFC linkbetween their respective devices can then be initiated by, e.g, a secondtap between the devices. In yet another peer-to-peer embodiment, forexample, a swap meet or a flea market scenario in which the goods arenot a downloadable type, e.g., a stereo or a TV, the recipient maysimply hand the goods over to the sender upon receipt of confirmation ofthe transaction. Indeed, as those of skill in the art will appreciate,many advantageous variations on the foregoing peer-to-peer paymenttransaction scenarios are possible, each enabling the transaction to beeffected quickly, easily and without the need for cash, checks, creditcards and the known drawbacks respectively attendant thereto.

FIG. 9 shows examples of various interface screens that can be displayedon a sender's and/or a recipient's mobile device for conducting apeer-to-peer financial transaction between two mobile devices using nearfield communication in a network environment in accordance with oneembodiment of the present disclosure.

Although the apparatus and methods of the present invention have beendescribed and illustrated herein with reference to certain specificexample embodiments thereof, it should be understood that a wide varietyof modifications and variations may be made to these without departingfrom the spirit and scope of the invention, as defined by the claimsappended hereafter and their functional equivalents.

What is claimed is:
 1. An electronic payment method for facilitatingpurchase and transfer of a value item, the method comprising: inresponse to detecting a first tap at a user device, establishing a nearfield communication (NFC) link by the user device with a merchantdevice; receiving, at the user device, a transaction request from themerchant device via the NFC link; displaying, at the user device,information corresponding to the received transaction request; creating,at the user device, a payment request based on the received transactionrequest; in response to detecting a second tap at the user device,transmitting the payment request by the user device to a paymentprovider system via a communication channel that is distinct from theNFC link, wherein the payment request is configured to cause the paymentprovider system to transfer funds from an account associated with theuser device to an account associated with the merchant device; andreceiving, at the user device, information corresponding to the valueitem.
 2. The electronic payment method of claim 1, wherein the receivinginformation corresponding to the value item includes receiving atransmission of the value item.
 3. The electronic payment method ofclaim 1, wherein the receiving information corresponding to the valueitem includes receiving information for unlocking use of the value item.4. The electronic payment method of claim 3, further comprisingreceiving at the user device, in response to the first tap, a lockedversion of the value item.
 5. The electronic payment method of claim 1,wherein: the displaying the information corresponding to the receivedtransaction request includes displaying an option to enter modificationsto the displayed information; and the creating the payment request basedon the received transaction request is further based on themodifications.
 6. A non-transitory machine-readable medium comprising aplurality of machine-readable instructions which, when executed by oneor more processors of one, the other, or both of a communication deviceof a user and a communication device of a seller, are adapted to causeone, the other or both of the devices to perform a method comprising: inresponse to detecting a first tap between the user device and themerchant device, establishing a near field communication (NFC) linkbetween the user device and the merchant device; receiving, at the userdevice, a transaction request from the merchant device via the NFC link;displaying, at the user device, information corresponding to thereceived transaction request; generating, at the user device, a paymentauthorization based on the received transaction request; in response toreceiving a user authorization at the user device, transmitting thepayment authorization by the user device to a payment provider systemvia a communication channel different from the NFC link, the paymentauthorization being configured to cause the payment provider system toeffect a transfer of funds from an account associated with the user toan account associated with the merchant; and receiving a value item atthe user device.
 7. The non-transitory machine-readable medium of claim6, wherein the receiving a user authorization comprises detecting asecond tap between the user device and the merchant device.
 8. Thenon-transitory machine-readable medium of claim 6, wherein thetransaction request comprises at least one of the group consisting of anidentity of the merchant, phone number, an address, a receiving accountidentity and a price of the value item.
 9. The non-transitorymachine-readable medium of claim 6, wherein the payment authorizationcomprises at least one of the group consisting of an identity of theuser, a password, a personal identification number (PIN), a phonenumber, an address, a payment funding account identity and an amount offunds to be transferred.
 10. The non-transitory machine-readable mediumof claim 6, wherein the method further comprises receiving, at one, theother, or both the user device and the merchant device, a message fromthe payment provider system confirming the transfer of funds.
 11. Thenon-transitory machine-readable medium of claim 10, wherein: the valueitem is received in a locked form, and the method further comprisestransmitting, from the merchant device to the user device, informationfor unlocking use of the value item.
 12. The non-transitorymachine-readable medium of claim 11, wherein the transmittinginformation for unlocking use of the value item is in response to thereceiving, at the merchant device, the message from the payment providersystem confirming the transfer of funds.
 13. The non-transitorymachine-readable medium of claim 7, wherein the value item is receivedafter the first tap, the second tap or after receiving, at one, theother, or both the user device and the merchant device, a message fromthe payment provider system confirming the transfer of funds.
 14. Amethod, comprising: causing a first tap between a buyer's communicationdevice and a seller's communication device, the first tap beingeffective to: establish a near field communication (NFC) link betweenthe buyer's communication device and the seller's communication device;and transmit an offer of sale of a value item from the seller'scommunication device to the buyer's communication device via the NFClink; creating, on the buyer's communication device, a paymentauthorization based on the offer of sale; causing a second tap betweenthe buyer's communication device and the seller's communication device,the second tap being effective to: transmit the payment authorization bythe user device to a payment provider via a communication channel thatis distinct from the NFC link, the payment authorization being effectiveto cause the payment provider to effect a transfer of funds from anaccount associated with the buyer to an account associated with theseller; and receiving information relating to the value item at thebuyer's communication device.
 15. The method of claim 14, wherein thereceiving information relating to the value item includes receiving atransmission of the value item.
 16. The method of claim 15, wherein thereceiving information relating to the value item includes receivinginformation for unlocking use of the value item.
 17. The method of claim16, further comprising receiving, at the buyer's communication device,in response to the first tap, a locked version of the value item. 18.The method of claim 14, further comprising displaying informationrelating to the offer of sale on the buyer's communication device,wherein the displaying includes displaying an option to entermodifications to the offer of sale, and the creating is further based onthe modifications.
 19. The method of claim 14, wherein at least aportion of the communication channel that is distinct from the NFC linkis wireless.
 20. The method of claim 14, further comprising receiving,at one, the other, or both the buyer's communication device and theseller's communication device, a message from the payment providerconfirming the transfer of funds.